1. Field of the Invention
The present invention relates to travelers checks and a system for making such travelers checks more valuable to the holders thereof.
2. Description of Prior Art
Travelers checks constitute familiar financial instruments. A person desiring to purchase one or more travelers checks simply goes to the local bank, signs a form, and obtains the desired travelers check(s).
The business of issuing travelers checks is a highly profitable one for the issuing entity. This is so for the main reason that, on the average, the issued travelers checks remain un-redeemed for a substantial period of time; during which time the issuing agency derives interest income from the cash having been tendered for the issued but not-yet-redeemed checks.
For instance, American Express Company of New York, N.Y.--which is the largest issuer of travelers checks in the USA--reportedly carries a float of several billion dollars resulting from issued by as-yet-unredeemed travelers checks. At an interest rate of 10% p.a., a profit of several hundred million dollars per year is indicated.